Stock Markets January 22, 2026

Shell Mulls Divestiture of Vaca Muerta Shale Assets in Argentina

Oil giant assesses market interest for potential sale amid valuation challenges

By Derek Hwang SHEL
Shell Mulls Divestiture of Vaca Muerta Shale Assets in Argentina
SHEL

Royal Dutch Shell is investigating the option of selling some or all of its holdings in the Vaca Muerta shale formation within Argentina's Neuquen basin. The company has approached prospective buyers over recent weeks to gauge interest, but no final decision has been made. Valuation of these assets remains complicated due to their early development stage and volatile commodity prices.

Key Points

  • Shell is actively exploring the sale of its Vaca Muerta shale assets in Argentina.
  • The transaction could involve a full or partial divestment depending on market interest.
  • Valuation complications arise from the assets' early development phase and commodity price volatility.

Energy conglomerate Shell is currently examining the possibility of offloading its interests in Argentina's Vaca Muerta shale reservoir, a significant site situated in the Neuquen basin. Recent contacts with potential purchasers indicate Shell's active efforts to measure market appetite for these assets.

The multinational corporation is contemplating either a partial or complete sale of the shale oil and gas properties. Insiders suggest the value of these holdings could reach into the billions of dollars, though assigning a precise price is hindered by the undeveloped nature of certain parcels and the unpredictable fluctuations in commodity markets.

Several individuals acquainted with the matter, preferring anonymity, pointed out that the contemplated transaction remains unsettled. Shell retains the option to maintain ownership of the Vaca Muerta properties if it so decides. When approached for comment, Shell chose not to address the subject publicly.

This development is part of Shell's broader portfolio strategy, reflecting ongoing evaluations of asset performance and market conditions. The Vaca Muerta formation continues to represent a strategic region for unconventional hydrocarbon extraction, yet navigating the current energy landscape and asset valuations presents notable challenges.

Risks

  • Uncertainty surrounding the definitive sale decision, as Shell may opt to retain the assets.
  • Difficulty in accurately appraising asset value due to market fluctuations and the immature stage of development.
  • Potential impacts on the energy and commodities sectors contingent on transaction outcomes and subsequent operational decisions.

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